Home prices in the San Fernando Valley hit an eight-year high in June, though the price gains appear to be leveling off as market activity slows, according to a report by the Southland Regional Association of Realtors.

The median price hit $536,000, up 5.6 percent over a year earlier and the highest price since December 2006. The price also represented a gain of 3.1 percent over May when the median was $520,000.

A total of 525 homes closed escrow in June, down 3.5 percent from a year earlier and up slightly from May.

Roger Hance, president of the association, pointed out that while percentage gains continue, they are no longer in the double-digit range.

“Price gains are slowing and sales are flat for a myriad of reasons,” Hance said in the report. “Foremost is the fact that the so-called ‘bargain’ properties that attracted investors and all-cash buyers post-recession are gone, and second is the fact that higher prices limit affordability for traditional buyers.”

Meanwhile, inventory returned to more normal levels, with 1,808 properties listed for sale during the month, up 36 percent from a year earlier. The figure represents a 2.6-month supply, which is still low by historical standards.

In the Santa Clarita Valley, the median price was $481,000, up nearly 12 percent from a year earlier but $4,000 lower than May.

The slowdown in price gains was accompanied by slowing sales in Santa Clarita. Just 190 homes changed hands during the month, nearly 10 percent less than a year earlier.

The listed inventory of homes and condominiums rose 65 percent to 706 units, representing a 2.5-month supply.